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For each situation, determine the cash proceeds from the bond sale and determine the discount or the premium on the date of issue Bond info

For each situation, determine the cash proceeds from the bond sale and determine the discount or the premium on the date of issue

Bond info

Sales Proceeds

Amount of discount

Amount of Premium

Example: $100,000 of 10%, 5 year bond issued for $93,000

93,000

7,000

0

$50,000 of 15%, 3 year bond issued for $55,000

$75,000 of 5%, 7 year bond issued for $75,000

$10,000,000 of 6%, 20 year bond issued for 98

5,000,000 of 6%, 20 year bond issued at par

$10,000 of 4%, 15 year bond issued for 100

$10,000,000 of 12%, 30 year bond issued for 104

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